Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a focus on deep-water and harsh environment drilling services and believes that it operates one of the most versatile offshore drilling fleets in the world.

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The estimated firm contract backlog, excluding mobilization, is approximately $123 million and $118 million, respectively. The rigs are expected to commence work in Brazil in November 2019 and the contracts include priced options for 680 days and 815 days, respectively.”

President and Chief Executive Officer Jeremy Thigpen, commented: “We are very pleased to have so quickly secured contracts for the Mykonos and Corcovado, two of the high-specification ultra-deep-water drillships acquired as part of the Ocean Rig transaction last December.

These contracts further solidify our long-standing partnership with Petrobras, and will expand our rig operations in the strategically important market of Brazil. With three rigs operating in the region, we intend to benefit from efficiencies that can only be derived from building scale in this market.”

Analysts at ZACKS noted: “Transocean, sitting atop a record backlog of $12.2 billion, is the largest provider of offshore contract drilling services. The acquisition of Songa and Ocean Rig bolstered the offshore game of the company to a considerable extent.

The buyouts have boosted Transocean’s long-term opportunities, helping the company penetrate into deep-and harsh-water markets more effectively.

With contracting activities picking up, Transocean is poised to capitalize on the gradual rise of offshore activities, as the company has been taking necessary steps to enhance its fleet with modern and competitive rigs, while scrapping off old and incompetent drillships.

While the dayrates remain a concern, activity upticks continue to aid the company. If the dayrates start picking up eventually in the medium term, the unparallel fleet of Transocean, will position it to capitalize on market recovery, which is expected to give a new lease of life to deepwater drilling very soon.”

If analysts are correct, this deepwater drilling company could be profitable in the very near future.

RIG should be considered a buy if recent momentum continues.

Look for an entry at $9.10 with a price target of at least $10.80 based on the pattern in the chart.

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